HCI Case Study

NEW COKE  http://www.nytimes.com/1997/10/19/us/roberto-c-goizueta-coca-cola-chairman-noted-for-company-turnaround-dies-at-65.html?pagewanted=all

In 1985, Coke's domestic market share suffered not only at the hands of Pepsi but from a plethora of less expensive, private-label colas. The company quickly replaced its 99-year-old formula on April 23, 1985, with a sweeter, smoother version. It became the greatest marketing blunder since the Edsel. Millions of Coke fans were outraged. Corporate headquarters in Atlanta was besieged with letters, telegrams and phone calls. A grass-roots fan club was born, dedicated to bringing back ''old'' Coke.

On July 11, humiliated Coke executives brought back the old formula as ''Classic Coke.'' New Coke was renamed Coke II and faded into corporate history. Although the new formula is still sold in some markets, it accounts for less than one-tenth of 1 percent of all soft-drink sales.

--D., Elrick